Legal review: new ideas for divorce financial settlements
Divorce or the breakdown of a Civil Partnership is very difficult for the separating couple and any children. The stress can spread throughout extended family and friendship groups too. This powerful emotional turmoil can cloud decision-making. The couple’s difficulties can be exacerbated when trying to divide their assets, at the same time as trying to focus on protecting any family children from the conflict too. Independent advice is very helpful to assist navigating through these processes.
The Court procedure itself can add a layer of stress, as it can be confusing and lengthy. However, with guidance it can be used to try to reach agreement, and if not, to minimise hostility and costs. I am a very experienced divorce solicitor and mediator and my role is to protect, guide and advise my clients through the legal process. Each client has specific needs unique to their personal and financial situation. Advice might be needed on personal safety if there are issues of abuse, or a need to protect children. Assets might need to be protected from an unscrupulous other party.
People can choose to prepare their own documents with advice and undertake negotiations themselves often through mediation. Divorcing couples submit their agreement regarding finances to the Family Financial Remedies Court or ask for a judgement on a dispute. Recently “The Way Forward” offered proposals for improving the smooth running and accessibility of the court process, a paper prepared by members of the bar, judiciary and solicitors, led by Judge Stuart Farquhar. They looked at how to improve the process and procedure in the courts. This is especially critical when many hearings are still being conducted remotely by video connection.
Their recommendations are to speed up the legal process by encouraging couples to prepare a statement of their finances at the start. They can investigate any mortgage potential, have joint valuations from experts and consider a pension report to assess relative pension values and even start to research the kind of properties in which they might wish to relocate if they are not remaining in the family home.
This process would allow couples to raise and answer questions and put forward a proposal for settlement on a “without prejudice” basis early on in the process, before even reaching a first court hearing. This would fast track the current process so that by the time of the first court hearing, if things were not already settled, the parties will be in a better position for a judge to provide them with guidance for settlement.
We use these positive ideas in our practice to encourage negotiation at an early stage, including through mediation, to identify any reasonable settlement that can be put forward.
If you have any questions or queries about this article or any of our other articles many of which are on our website www.hmbsolicitors.co.uk, please feel free to email us on [email protected] or [email protected].